WaMu set to become largest US issuer of PayPass

Washington Mutual is offering its customers the convenience of going contactless in 2008 with the WaMu Debit MasterCard with PayPass.

WaMu expects to issue 12-15m PayPass cards in 2008, making it the nation's largest issuer (as of Q4 2007 there are more than 23m PayPass cards and devices in circulation globally). WaMu launched nationwide in January, offering the card to new customers opening its signature WaMu Free Checking account, as well as to all WaMu Small Business customers. In March, the bank began issuing PayPass to customers whose debit cards are renewing.

"Our ability to offer customers a fast, convenient and secure way to make their everyday purchases is completely consistent with WaMu's 'simpler banking' approach," comments Nandita Bakhshi, division executive, consumer deposit products. "Studies show that MasterCard PayPass cards have shorter transaction times than cash or signature transactions, and we believe the added ease and convenience is a benefit WaMu customers will appreciate."

Customers can make purchases by tapping their PayPass card over special terminals at select restaurants, gas stations, convenience stores, pharmacies, movie theaters, and other locations. Merchants that accept PayPass include AMC Theaters, BestBuy, CVS, 7Eleven, McDonald's, Office Depot, Petco, and Tully's.

"Our research shows that cardholders who use their PayPass cards tend to make them their preferred cards, which will deliver an economic benefit to WaMu by driving its cards to the 'top of wallet,'" says Bill Mathis, group executive, US relationship management, MasterCard Worldwide. "WaMu's issuance of 12-15m PayPass cards will greatly accelerate the shift by consumers and merchants to contactless payments, creating shorter lines and loyal customers along the way."